Sorry to see that Cygnus may be imploding. They claim Sankyo defaulted on an agreement to sell
the watches.
Their stock price which was as high as $20 in 2000, is now 20 cents.
Although I was not very impressed by the initial Glucowatch, I was hoping that version 2.0 would
eventually emerge and work better, be easier to use or be less expensive.
IMHO, that looks unlikely. Perhaps if they collect $450m from their lawsuit they can continue
on......Not a likely proposition either.
BEGIN
Cygnus, Inc. Reduces Work Force by Approximately 60% as a Result of Sankyo Pharma Inc.'s Breach
of Contract
Redwood City, CA -- October 9, 2003 -- Cygnus, Inc. (OTCBB:CYGN) announced a reduction in force of
approximately 60% of its work force, in response to the recent decision by Sankyo Pharma, Inc. to
stop performing under its contracts with Cygnus. According to Sankyo Pharma, Inc., Sankyo Pharma
Inc. is currently warehousing approximately two years' worth of inventory of Cygnus' GlucoWatch(R)
G2(TM) Biographer products. Cygnus' reduction in force should therefore not have any immediate
impact on the availability of these products in the market. On October 6, 2003, Cygnus filed a
lawsuit against Sankyo Pharma Inc. and Sankyo Co., Ltd., a large Japanese pharmaceutical and medical
products company, seeking damages of at least $450 million in connection with Sankyo Pharma, Inc.'s
decision to stop performing under its contracts with Cygnus.
"The contract breaches by Sankyo Pharma Inc. and the intentional interference with contract by
Sankyo Co. Ltd., has caused significant damage to Cygnus, its stockholders, its customers, and now
to many skilled and loyal Cygnus employees who have given their hearts and souls to help make the
revolutionary GlucoWatch Biographer technology a reality," stated John C Hodgman, Chairman, Chief
Executive Officer and President of Cygnus, Inc. "We are greatly saddened that we have been forced to
lay off such devoted people."
About Cygnus Cygnus (www.cygn.com and www.glucowatch.com), founded in 1985 and headquartered in
Redwood City, California, develops, manufactures and commercializes new and improved glucose-
monitoring devices. Cygnus' products are designed to provide more data to individuals and their
physicians and enable them to make better-informed decisions on how to manage diabetes. The
GlucoWatch(R) Biographer was Cygnus' first approved product. The device and its second-generation
model, the GlucoWatch(R) G2(TM) Biographer, are the only products approved by the FDA that provide
frequent, automatic and non-invasive measurement of glucose levels. Cygnus believes its products
represent the most significant commercialized technological advancement in self-monitoring of
glucose levels since the advent of "finger-stick" blood glucose measurement approximately 20 years
ago. The Biographer is not intended to replace the common "finger-stick" testing method, but is
indicated as an adjunctive device to supplement blood glucose testing to provide more complete,
ongoing information about glucose levels.
This news release contains statements concerning Cygnus' allegations and expectations regarding its
rights under its contracts with Sankyo Pharma Inc., the breach thereof by Sankyo Pharma Inc., and
the interference therewith by Sankyo Co. Ltd., and the capabilities and potential of the GlucoWatch
Biographer business. These statements constitute forward-looking statements for the purposes of the
safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Although we
believe that these forward-looking statements are based on a reasonable perception of the facts and
reasonable assumptions and expectations, the statements are subject to and involve numerous
uncertainties and risks. Factors that could affect the actual results include potentially unknown
facts and matters that will be discovered during the course of the litigation, and the effects of
other creditors' claims on our financial position. These risks and uncertainties should be
considered in evaluating the forward-looking statements, and undue reliance should not be placed on
such statements. The Company disclaims any responsibility for updating any such forward-looking
statements.
NOTE: "GlucoWatch" is a registered trademark and "G2" is a trademark of Cygnus, Inc.
END
BTW, an excerpt from a May 2003 posting I made:
"As an aside, I also am extremely disappointed by our problems getting the Cygnus Glucowatch. We
have had several patients wanting them (warts and all), and we can't seem to get their sales
department to pay attention. I can't remember the last time I have experienced such an *inept*
company !"
So those "diabetes investors" who bet on this Cygnus have been taken to the cleaners. (Unless, of
course, they have sold short...) Down from $4.50 to .45 in one year. I look for this one to be off
the map entirely in a year, unless somebody buys them out quickly. Perhaps this company is still a
good choice for the short sellers, since it seems headed to the same place as my first computer's
manufacturer, IMSAI.
Decent product, horrible execution. "